UNUSUAL OPTION ACTIVITY:
We have seen unusual option activity in stock MTG. A customer bought 338,189 Mar 4.5 Calls at $.42 while the stock was trading at $4.49. I think the size of the play was too big and therefore, we are not playing the MTG options. Today, we have seen a customer sell 1,850 ASIA Apr 10 Puts at $1.05. ASIA seems to be trading in a tight range and therefore I am staying away from those options as well. Baidu reports numbers after the bell. The average estimate of analysts is for net income of $.90 cents per share. Baidu has beat EPS estimates each quarter over the past three years. After reporting earnings, Baidu has risen the next session seven of eight quarters. General Motors posted its highest profit ever last year, though fourth-quarter revenue and earnings fell short of expectations. GM is currently trading higher by 7% or at $26.43 a share. Cloud Peak Energy, Ultra Petroleum Corp, and Barrick Gold set to report earnings after the close.
By Greg Zimny